If you ask investors to name some blue-chip stocks, there is a very high likelihood that the response will include BHP Billiton Limited (ASX: BHP), Telstra Corporation Ltd (ASX: TLS), Woolworths Limited (ASX: WOW) and the major banks.
Interestingly, all of the above mentioned so-called blue chip stocks with the exception of Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have experienced share price declines of more than the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the past 12 months.
Arguably, it's time for investors to start questioning whether these historic blue chip stocks deserve to be considered blue chip stocks any more…
With their best growth days behind them and mounting competition threatening their long term earnings power it could be time to look to other up-and-coming businesses.
Here are three to consider…
- CSL Limited (ASX: CSL) is a global market leader in life saving plasma derived medical products. The group has a market capitalisation of $46 billion and as I highlighted here, its long term growth outlook is compelling.
- Macquarie Group Ltd (ASX: MQG) has grown its domestic investment banking operations into a business with global reach and a market capitalisation of $28 billion. Serving markets that are very large and with a history of developing new business lines the long-term growth outlook for Macquarie would appear to be much greater than that of its major domestic banking peer group.
- Brambles Limited (ASX: BXB) is a world leader in the supply of logistics solutions to supply networks utilising crates, containers and pallets. The company has a market capitalisation of $17 billion and as I noted here enjoys some appealing competitive advantages.
